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Accounting Policies of STG Lifecare Ltd. Company

Mar 31, 2015

A) Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, actuals results could differ from these estimates.

B) valuation-fixed Assets and Inventory

(I) Fixed assets are normally accounted for on cost basis including the cost of installation where incurred. Expenditure on regular staff, which might be occasionally engaged for installation work, is charged to revenue.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

(II) Inventory:-

(i) Stock of books are valued at cost based on First-in First-out method.

(ii) Softwares under development & intended for sale and not ready for use before the year end, are valued at cost as Software Work-in- Progress

C) Depreciation and Amortisation

(a) Depreciation on all the fixed assets is provided on Straight Line Method at the rates prescribed in schedule -II to the Companies Act, 2013.

(b) Depreciation on additions/ deletions to Fixed Assets is provided on prorata basis from/to date of additions/deletions.

(c) In case of financial period consist of the year less/more than a normal year of 12 months then depreciation is provided for that particular period.

(d) In case of courseware/software developed and capitalised , the same is written off over a period of 3 years, considering the estimated economic life of the product.

D) Impairment of Assets

The carrying amount of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and value in use.

E) Investments

Long-term Investments, are valued at their acquisition cost. Any decline in the value of said investment other than the temporary decline is recognised and charged to Profit & Loss Account.

F) Revenue Recognition

a) (i) In case of own centres income from coaching fee is recognised to the extent of course/programme delivered to students. Income from courseware is recognised on the basis of courseware supplied to the students/clients.

(ii) In Case of domestic licence centres, the income is recognised on the basis of collections received from licenced against course fee. Income from courseware is recognised on the basis of courseware supplied to the licence centre.

b) Income from Technical Know How/ Licence Fees are recognised on the basis of Agreement/MOU entered subject to realisation of the income.

c) In respect of Software Development/Products and Consultancy activities, the revenue is recognised on dispatch/ delivery of the concerned goods/services by adopting percentage completion method wherever required.

g) Public Issue Expenses and Pre-Operative Expenses

Public issue expenditure and pre-operative expenses incurred on further issue of Share Capital are written off over a period of ten years on prorata basis.

h) Foreign Currency Transactions

Transactions in foreign currency are booked at pre-determined rate and all monetary assets and liabilities in foreign currency are restated at the period end.

Gain / Loss arising out of fluctuations on realisation / payment or restatement , except those identifiable to acquisition of fixed assets & Investment are charged /credited to Profit & Loss Account.

i) Employees' / Retirement Benefits

a) All employees of the Company are entitled to receive benefits under the Provident Fund, which is a defined contribution plan.

b) In addition, some employees of the Company are covered under the employees' state insurance schemes.

c) The Company's contributions to above schemes are expensed in the Profit and Loss Account.

d) Liability on account of Gratuity and Leave Encashment of Employees is provided on accrual basis.

j) Taxation

Income tax expenses are accrued in accordance with Accounting Standard -22 " Accounting for Taxes on Income, issued by The Institute of Chartered Accountants of India, which includes current taxes and deferred taxes. Deferred income tax reflects the impact of current year timing difference between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax assets are recognised only to extent, there is a reasonable certainty that sufficient future taxable income will be available. Such Deferred tax Assets and Liabilities are measured at each Balance Sheet date & the carrying value of the same are adjusted for recognising the change in the value of each such deferred tax Asset and Liability.

k) Borrowing Cost

Interest and other costs in connection with the borrowing of funds to the extent related/attributed to the acquisition/ construction of qualifying fixed assets are capitalized upto the date when such assets are ready for its intended use and other borrowing costs are charged to Profit & Loss Account.

l) Provision and Contingencies

The Company creates a provision when there is a present obligation as a result of past events that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a Contingent Liability is made when there is a possible obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation can not be made. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

m) Segment reporting

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

n) Earnings per share

Basic earning per share (EPS) is calculated by dividing the net profit after tax for the year (including the post-tax effect of extraordinary items, if any) attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

o) Provisions

A provision is recognized when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

p) Cash and cash equivalents

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments.

The cash flows from regular revenue generating, financing, and investing activities of the company are segregated.


Jun 30, 2013

A) Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, actuals results could differ from these estimates.

b) Valution-Fixed Assets and Inventory

(I) Fixed assets are normally accounted for on cost basis including the cost of installation where incurred. Expenditure on regular staff, which might be occasionally engaged for installation work, is charged to revenue,

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. Al other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

(II) Inventory:-

(i) Stock of books are valued at cost based on First-in First-out method.

(ii) Softwares under development & intended for sale and not ready for use before the year end, are valued at cost as Software Work-in-Progress

c) Depreciation and Amortisation

(a) Normal Depreciation on all the fixed assets is provided on Straight Line Method at the rates prescribed in schedule -XIV to the Companies Act 1956.

(b) Depreciation on additions/ deletions to Fixed Assets is provided on prorata basis from/to date of additions/deletions.

(c) In case of financial period consist of the year less/more than a normal year of 12 months then depreciation is provided for that particular period.

(d) In case of courseware/software developed and capitalised, the same is written off over a period of 3 years, considering the estimated economic life of the product.

d) Impairment of Assets

The carrying amount of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An imparmen! loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in use.

e) Investments

Long-term Investments, are valued at their acquisition cost. Any decline in the value of said investment other than the temporary decline is recognised and charged to Profit & Loss Account.

f) Revenue Recognition

a.(i) In case of own centres income from coaching fee is recognised to the extent of course/programme delievered to students. Income from courseware is recognised on the basis of courseware supplied to the students/clients. (ii) In Case of domestic licence centres, the income is recognised on the basis of collections received from licencee against course fee. Income from courseware is recognised on the basis of courseware supplied to the licence centre.

b. Income from Technical Know How/ Licence Fees are recognised on the basis of Agreement/MOU entered subject to realisation of the income.

c. In respect of Software Development/Products and Consultancy activities, the revenue is recognised on dispatch/ delivery of the concerned goods/services by adopting percentage completion method wherever required.

g) Public Issue Expenses and Preoperative Expenses

Public issue expenditure and pre-operative expenses incurred on further issue of Share Capital are written off over a period of ten yean; on prorata basis. h) Foreign Currency Transactions

Transactions in foreign currency are booked at pre-determined rate and all monetary assets and liabilities in foreign currency are restated at the period end.

Gain / Loss arising out of fluctuations on realisation / payment or restatement, except those identifiable to acquisition of fixed assets & Investment are charged /credited to

Profits Loss Account. i) Employees'' I Retirement Benefits

a. All employees of the Company are entitled to receive benefits under the Provident Fund, which is a defined contribution plan.

b. In addition, some employees of the Company are covered under the employees'' state insurance schemes.

c. The Company''s contributions to above schemes are expensed in the Profit and Loss Account.

d. Liability on account of Gratuity and Leave Encashment of Employees is provided on accrual basis. j) Taxation

Income tax expenses are accrued in accordance with Accounting Standard -22'' Accounting for Taxes on Income, issued by The Institute of Chartered Accountants of India, which includes current taxes and deferred taxes. Deferred income tax reflects the impact of current year timing difference between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax assets are recognised only to extent, there is a reasonable certainty that sufficient future taxable income will be available. Such Deferred tax Assets and Liabilities are measured at each Balance Sheet date £ the carrying value of the same are adjusted for recognising the change in the value of each such deferred tax Asset and Liability.

k) Borrowing Cost

Interest and other costs in connection with the borrowing of funds to the extent related/attributed to the acquisition/ construction of qualifying fixed assets are capitalized upto the date when such assets are ready for its intended use and other borrowing costs are charged to Profit & Loss Account.

I) Provlson and Contingencies

The Company creates a provision when there is a present obligation as a result of past events that probably requires an outflow of resourcesand a reliable estimate can be made of the amount of obligation. A disclosure for a Contingent Liability is made when there is a possible obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation can not be made. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

m) Segment reporting

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

n) Earnings per share

Basic earning per share (EPS) is calculated by dividing the net profit after tax for the year (including the post-tax effect of extraordinary items, if any) attributable to equity

shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. o) Provisions A provision is recognized when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

p) Cash and cash equivalents Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments.

The cash flows from regular revenue generating, financing, and investing activities of the company are segregated.


Mar 31, 2012

A) Change in accounting policy

Presentation and disclosure of financial statements

During the year ended 31 March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company, forpreparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

b) Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, actuals results could differ from these estimates.

c) Valution-Fixed Assets and Inventory

(I) Fixed assets are normally accounted for on cost basis including the cost of installation where incurred. Expenditure on regular staff, which might be occasionally engaged for installation work, is charged to revenue.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

(II) Inventory:-

(i) Stock of books are valued at cost based on First-in First-out method.

(ii) Softwares under development & intended for sale and not ready for use before the year end, are valued at cost as Software Work-in-Progress

d) Depreciation and Amortisation

(a) Normal Depreciation on all the fixed assets is provided on Straight Line Method at the rates prescribed in schedule -XIV to the Companies Act, 1956.

(b) Depreciation on additions/ deletions to Fixed Assets is provided on prorata basis from/to date of additions/deletions

(c) In case of financial year consist of the year less/more than a normal year of 12 months then depreciation is provided for that particular year.

(d) In case of courseware/software developed and capitalised , the same is written off over a period of 3 years, considering the estimated economic life of the product.

e) Impairment of Assets

The carrying amount of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An imparment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and value in use.

f) Investments

Long-term Investments, are valued at their acquisition cost. Any decline in the value of said investment other than the temporary decline is recognised and charged to Profit & Loss Account.

g) Revenue Recognition

a. (i) In case of own centres income from coaching fee is recognised to the extent of course/programme delievered to students. Income from courseware is recognised on the basis of courseware supplied to the students/clients.

(ii) In case of domestic licence centres, the income is recognised on the basis of collections received from licencee against course fee. Income from courseware is recognised on the basis of courseware supplied to the licence centre.

b. Income from Technical Know How/ Licence Fees are recognised on the basis of Agreement/MOU entered subject to realisation of the income.

c. In respect of Software Development/Products and Consultancy activities, the revenue is recognised on dispatch/ delivery of the concerned goods/ services by adopting percentage completion method wherever required.

h) Public Issue Expenses and Pre-Operative Expenses

Public issue expenditure and pre-operative expenses incurred on further issue of Share Capital are written off over a period of ten years on prorata basis.

i) Foreign Currency Transactions

Transactions in foreign currency are booked at pre-determined rate and all monetary assets and liabilities in foreign currency are restated at the year end. Gain / Loss arising out of fluctuations on realisation / payment or restatement , except those identifiable to acquisition of fixed assets & Investment are charged /credited to Profit & Loss Account.

j) Employees' / Retirement Benefits

a. All employees of the Company are entitled to receive benefits under the Provident Fund, which is a defined contribution plan.

b. In addition, some employees of the Company are covered under the employees' state insurance schemes

c. The Company's contributions to above schemes are expensed in the Profit and Loss Account.

d. Liability on account of Gratuity and Leave Encashment of Employees is provided on the actuarial Valuation.

k) Taxation

Income tax expenses are accrued in accordance with Accounting Standard -22 " Accounting for Taxes on Income, issued by The Institute of Chartered Accountants of India, which includes current taxes and deferred taxes. Deferred income tax reflects the impact of current year timing difference between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax assets are recognised only to extent, there is a reasonable certainty that sufficient future taxable income will be available. Such Deferred tax Assets and Liabilities are measured at each Balance Sheet date & the carrying value of the same are adjusted for recognising the change in the value of each such deferred tax Asset and Liability.

l) Borrowing Cost

Interest and other costs in connection with the borrowing of funds to the extent related/attributed to the acquisition/ construction of qualifying fixed assets are capitalized upto the date when such assets are ready for its intended use and other borrowing costs are charged to Profit & Loss Account.

m) Provison and Contingencies

The Company creates a provision when there is a present obligation as a result of past events that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a Contingent Liability is made when there is a possible obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation can not be made. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

n) Segment reporting

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

o) Earnings per share

Basic earning per share (EPS) is calculated by dividing the net profit after tax for the year (including the post-tax effect of extraordinary items, if any) attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

p) Provisions

A provision is recognized when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

q) Cash and cash equivalents

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments.

The cash flows from regular revenue generating, financing, and investing activities of the company are segregated.


Sep 30, 2009

1. SYSTEM OF ACCOUNTING

Except otherwise indicated:

(a) The company adopts the accrual concept in the preparation of the accounts.

(b) All expenditure and income are accounted for under the natural heads of accounts.

2. VALUATION

(a) Fixed assets are normally acounted for on cost basis including the cost of installation where incurred. Expenditure on regular staff, which might be occasionally engaged for installation work, is charged to revenue.

(b) Inventory:-

Stock of books are valued at cost based on First-in First-out method.

3. FIXED ASSET & DEPRECIATION

(a) Normal Depreciation on all the fixed assets is provided on Straight Line Method at the rates prescribed in schedule -XIV to the Companies Act, 1956.

(b) Depreciation on additions/ deletions to Fixed Assets is provided on prorata basis from/to date of addition/deletions.

(c) In case of financial year consist of the year less/more than a normal year of 12 months then depreciation is provided for that particular year.

(d) In case of courseware/software developed and capitalised, the same is written off over a period of 3 years, considering the estimated economic life of the product.

4. INVESTMENTS

Long-term Investments, are valued at their acquisition cost. Any decline in the value of said investment other than the temporary decline is recognised and charged to Profit & Loss Account

5. REVENUE RECOGNITION

a. (i) In case of own centres income from coaching fee is recognised

to the extent of course/programme delievered to students. Income from courseware is recognised on the basis of courseware supplied to the students/clients.

(ii) In Case of domestic licence centres, the income is recognised on the basis of collections received from licencee against course fee. Income from courseware is recognised on the basis of courseware supplied to the licence centre.

b. Income from Technical Know How/ Licence Fees are recognised on the basis of Agreement/MOU entered subject to realisation of the income.

c. In respect of Software Development/Products and Consultancy activities, the revenue is recognised on dispatch/ delivery of the concerned goods/ services by adopting percentage completion method wherever required.

6 PUBLIC ISSUE EXPENSES AND PRE-OPERATTVE EXPENSES

Public issue expenditure and pre-operative incurred on further issue of Share Capital are written off over a period of ten years on prorata basis.

7. RETIREMENTBENEFrrS

(a) Contribution to the Provident Fund and Employee State Insurance Fund is made monthly at predetermined rates to the appropriate authority.

(b) Provision for Gratuity is made as per the Gratuity Act, 1972.

(c) Liability on Account of Leave Encashment of Employee is provided on the accrual basis.

8. FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currency are booked at pre- determined rate and all monetary assets and liabilities in foreign currency are restated at the year end. Gain / Loss arising out of fluctuations on realisation / payment or restatement, except those identifiable to acquisition of fixed assets & Investment are charged / credited to Profit & Loss Account.

9. INCOME TAX

Income tax expenses are accrued in accordance with Accounting Standard -22 " Accounting for Taxes on Income, issued by The Institute of Chartered Accountants of India, which includes current taxes and deferred taxes. Deferred income tax reflects the impact of current year timing difference between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax assets are recognised only to extent, there is a reasonable certainty that sufficient future taxable income will be available. Such Deferred tax Assets and Liabilities are measured at each Balance Sheet date & the carrying value of the same are adjusted for recognising the change in the value of each such deferred tax Asset and Liability.

10. PROVISION & CONTINGENCIES

The Company creates a provision when there is a present obligation as a result of past events that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a Contingent Liability is made when there is a possible obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation can not be made.

 
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